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Our Economic Resilience & Reconstruction Mission
Prosperous
Green
Equal
Version: February 2021
Message from the Minister
Improving the well-being of everyone in Wales is the The UK has left the EU Single Market and we no
mission which drives our government’s approach to longer have access to the frictionless trade in goods
the economy. We need to recover from the economic or services with EU member states. The impacts are
damage of the pandemic then reconstruct the economy very significant for manufacturing businesses and
with the fundamental goal of achieving long term well- workers which are a larger part of Wales’ economy
being with dignity and fairness for people. Using the than elsewhere in the UK. We will need to learn
principles of the Well-being of Future Generations Act to live with border checks and new administrative
this document sets out clearly the values and priorities requirements as well as different patterns of
which will shape the decisions we must make in immigration and changes to funding mechanisms.
supporting our economic recovery.
At the same time we have an unequalled
The COVID-19 pandemic remains the single greatest opportunity to think long term and look to the
public health crisis of our times. It is having a deep future – to tackle with renewed vigour many of
and damaging impact on our health and our society. the deep-seated challenges that Wales faces and
COVID-19 has impacted the economy and labour to help our people, businesses and communities
market at an unprecedented scale, has brought recover and prosper. We won’t just look to claw
Ken Skates MS significant disruption, leading to sharp falls in the back the progress we made on unemployment and
Minister for Economy, Transport number of people employed, the number of hours economic inactivity by tackling the employability of
& North Wales they work and the number of job vacancies on offer. young people and adults entering the job market.
Combatting the virus and seeking to prevent and But will look to address the transferability and
mitigate the further damage of our exit from the adaptability of people and skills, and approach the
European Union are our key objectives. Both threaten economy differently, to ensure investment really
to reverse the progress we have made in reducing pays off for workers and moves us away from
unemployment and economic inactivity in Wales precarious employment, low wages and in-work
over the last decade, with the greatest impact on poverty. The approach must also take account of
those individuals who experience socio-economic the fundamental challenges we face in tackling the
disadvantage, for example women, Black, Asian and climate and nature crises that presents challenges
Minority Ethnic communities, disabled people and young and opportunities for both the foundational and
people entering the labour market for the first time. tradable economy.
3 Our Economic Resilience & Reconstruction Mission
We have responded at pace, drawing on the Cumulatively they threaten the fabric of our COVID-19 has had a significant direct economic
strengths of our collaborative approach of working communities, both urban and rural, and indirectly impact, but our determination for an integrated
in social partnership as Government, involving pose a risk to things we value as a nation such as the response also recognises that indirect impacts,
employers and Trade Unions to mitigate the vibrancy of our Welsh-speaking communities. In rural such as the consequences of damaged mental
economic impact while supporting business and communities in the west and north-west in particular and emotional health across the Welsh workforce,
workers. Nevertheless, over the next twelve where the proportion of Welsh-speakers is high a will also need attention.
months it is expected that unemployment, long-term set of risks persist relating to the agriculture
Looking ahead, the reconstruction of the economy
underemployment and economic inactivity will grow industry in tandem with shorter term risks related to
will not be a return to business as usual. The world
in Wales and across the UK. And it is vital we do the pandemic impact on the tourism industry and
has permanently changed. The response to the
not allow those economic conditions to provide the rural Small and Medium-sized Enterprises (SMEs).
pandemic has accelerated many structural trends in
fertile ground within which unfair work can take root
automation, decarbonisation and the impact of an
and spread. Collaborating with our social partners, Pandemic impacts will be felt differently across
aging population that were evident before the crisis.
we will ensure difficult economic circumstances economic sectors. All businesses will need to change
These changes have profound implications for the
do not drive a race to the bottom or dilute our in response to shift to a more circular economy,
future of work, community and well-being. COVID-19
ambitions for a fair work nation. including those in industries considered likely to
has impacted the economy and labour market at an
recover to the same or similar trading position as
unprecedented scale, bringing significant disruption
Young people, women, disabled people and ethnic before e.g. primary industries such as quarrying.
and leading to sharp falls in the number of people
minority communities will face particular difficulties Others will recover but need to evolve and return
employed, the number of hours they work and the
when entering and re-entering the labour market, more substantially and differently e.g. aviation and
number of job vacancies on offer. Innovations in
and within these groups, those with lower levels of steel. The work of initiatives such as the South
digital technologies will continue to drive changes
qualification and other disadvantages will face the Wales Industrial Cluster have a role in delivering
in the structure and nature of the Welsh economy,
greatest challenges. With a period of job losses this change. The return of restrictions, consumer
creating challenges in terms of the automation
potentially being followed by a period of weak confidence and the strength of order-books may
of work but also opportunities for new business,
job creation there is strong evidence that mass also mean some parts of the economy recover much
investment, lower work intensity and improved work
unemployment could create long lasting “scarring” more slowly e.g. hospitality, and construction linked
life balance.
effects on people, resulting in lower levels of to the housing market. The negative effects will be
income and higher risks of becoming unemployed. compounded by uncertainty about the UK’s future Whilst COVID-19 has come suddenly and at a
These deleterious effects will last over many years – trading relationships with the EU and the adverse huge cost, we have also witnessed people and
even decades. effects of future arrangements. communities coming together, reconnecting with
4 Our Economic Resilience & Reconstruction Mission
communities and local services and organising in Prosperity for All, and refocussed activity on the challenges and opportunities that we are facing
ways not seen in living memory. It continues to be a unique circumstances we face - not so much a right now. Our mission also responds to meeting the
challenging time for businesses and workers across different challenge, but a deeper one. We will build Well-being Goals and to the wider and longer term
Wales, but we have observed examples where on the progress we were making in delivering a issues we face, such as dealing with the climate
businesses and workers have repurposed and more inclusive economy and one that looks ahead emergency and nature crisis, implementing the
adapted themselves to take better advantage of to the industries of tomorrow. forthcoming Race Equality Action Plan which will
technology and to supply new markets. take forward recommendations from the COVID-19
We will also focus clearly on the influence of UK
Black, Asian and Minority Ethnic Socio-economic
We will need to harness opportunities such as the Government on recovery in Wales, in addition
Sub-Group, improving peoples experience of work
skills and abilities of our workforce, an invigorated to our own financial and policy levers. We have
and ensuring that the Welsh language grows and
entrepreneurial culture, a renewed focus and already shown ourselves very adept in delivering
thrives.
appreciation of the environment, key workers, direct financial support to businesses and creating
volunteers and public services, an appetite for a skills and training architecture which has been This must be a shared mission where all citizens
lifelong and online learning, and how digital appropriated, and adds value to the UK’s Kickstart and institutions of this country can and should
technology has connected us and enabled us to programme. The UK Government has great fiscal collaborate in the reconstruction of a prosperous,
operate as a society. We will continue to advocate and spend capacity to combat the scale of the green and equal economy.
the value of the Foundational Economy and never economic crisis we face, and we will maintain a
write off as unskilled and unproductive those vital sharp focus on ensuring they provide the necessary
jobs which keep us safe and civilised. funding to support economic reconstruction
Whilst this recovery mission focusses on our policy in Wales.
levers, it also recognises the intrinsic integration
We have a clear, ethical and coherent mission for
of the Welsh and wider UK economy and does
economic resilience and reconstruction which
not understate the significant impact that UK
responds to the current COVID-19 crisis and
Government decisions such as the Comprehensive
anticipates the consequences of EU Exit. It extends
Spending Review, Internal Market Bill and the
across the foundational and tradable economy
implications of their forthcoming place based Ken Skates MS
to provide a progressive and innovative policy
levelling up agenda may have for Wales. Minister for Economy, Transport
platform until the end of the current Senedd term
& North Wales
I have reflected on the breadth and progressive in April 2021 and beyond. It is grounded in Wales
nature of our current Economic Action Plan, and the approaches it contains reflect the unique
5 Our Economic Resilience & Reconstruction Mission
Our Mission
The pathway to Welsh economic resilience takes
A focus on resilience through strengthening
forward the priorities in COVID-19 Reconstruction:
the Foundational Economy and a diverse
Challenges and Priorities (October 2020). It builds on
yet inter-related economic base of outward-
the foundations of Prosperity for All: The Economic Prosperous
Action Plan. This shaped an economic development looking firms with positive innovation
programme which invests in people and businesses performance, good productivity levels and a
and drives prosperity and reducing inequality across highly skilled workforce.
all Wales. The mission builds on the early progress
we have made in raising the profile and challenges
in the Foundational Economy, recognising there is
more to be done to spread and scale the approach. High levels of circularity and resource
Other key initiatives including A Low Carbon efficiency. Part of a low carbon
Wales, Cymraeg 2050, the Employability Plan, the Green society, where we invest in low-carbon
Manufacturing Action Plan and our Fair Work agenda infrastructure, renewable energy projects
run through all. The Well-being of Future Generations and sustainable homes.
Act which is unique to Wales provides the framework
to consider the needs of future generataions and the
long-term challenges that our people and our planet
face. It has guided our approach to reconstruction
Investing in the productive potential of all
ensuring a values based recovery. As a result of tax
people in communities, where there is a fair
devolution, we are taking actions that will strengthen Equal
distribution of opportunities and people have
our tax base and help secure the money needed to
fund vital public services in Wales. Our mission aligns decent and secure employment.
closely with our Framework for Regional Investment,
learning lessons acquired over 20 years of EU
cohesion policy and setting out pathways through
which we may optimally use replacement funding from
the UK Government regionally.
6 Our Economic Resilience & Reconstruction Mission
Our intention is to create a Wales in which enhancing Three Outcomes
social, economic, environmental and cultural well-being
To translate our vision of a well-being economy
are our driving purpose, delivering a prosperous, green
into action and help everyone understand what
and equal economic recovery that recognises the
it means, it is underpinned by the pursuit of three
utmost importance of investing in people and places.
outcomes.
A more prosperous economy which requires
One Vision a steady focus on resilience, and a capacity for
Our vision is of a well-being economy which drives transformation. We will take action to support the
prosperity, is environmentally sound, and helps Foundational Economy and a diverse, inter-related
economic base of grounded outward-looking One Vision
everyone realise their potential. It is rooted in our
firms with positive innovation performance,
existing economic action plan, Prosperity for All, with Well-being
good productivity levels and an engaged and Economy
its progressive purposes of reducing inequality and
empowered workforce equipped with the skills
spreading wealth and well-being across all of Wales. for a changing world.
Our economic well-being is without any doubt tied to
Green
our environmental, cultural and social well-being. Economy
The drive for a well-being economy is no longer a
fringe approach. The OECD has recently launched Three Outcomes
its Centre on Well-being, Inclusion, Sustainability and Prosperous Equal
Equal Opportunity. Our membership of the Wellbeing Economy Economy
Economy Governments partnership (WEGo) network
has consolidated our place in the vanguard of this
Skills and Magnetise
progressive approach to economic development and Employment Investment
our reconstruction efforts will demonstrate our influence
and leadership on this agenda. We will engage with Five Beacons
emerging and progressive thinking and debate in Strengthen Accelerate Pursuit
the Adaptation of Social
this field, inputting our experience and learning from Foundations Value
international good practice.
7 Our Economic Resilience & Reconstruction Mission
A greener economy which demands high levels of
circularity, where resources are kept in use adding
economic value and where waste is avoided. This
can create jobs and skills opportunities in new
industries from renewables to repair.
This economy is integral to a low carbon society,
so we will invest in low-carbon and climate resilient
infrastructure, nature-based solutions, renewable
energy projects and sustainable homes.
A more equal economy which means investing
in the productive potential of all people in
communities making sure nobody is left behind.
We will build ambition, encourage learning for
life and support people to make the most of their
potential where work is well-rewarded and fulfilling.
Our regional approach will support a fair distribution
of opportunities to deliver fairer outcomes for all
members of society. We will continue to demand
and champion fair work.
Grafmarine (The OpTIC Centre, St Asaph) are developing an integrated solar energy creation and, electrical storage system for any flat
surface to create and store energy.
8 Our Economic Resilience & Reconstruction Mission
Five Beacons
Our activity is focussed around five beacons for
overcoming COVID-19, and delivering medium
and longer term recovery. The beacons are not
1 2 3 4 5
standalone projects but are a combination of
interventions we will make to underpin our approach
for economic recovery. Each builds on how we
have rapidly and flexibly adapted our policies and
interventions to meet the challenges caused by the
pandemic and points forward to realising our vision
of Wales as a well-being economy. Our commitment
to place-making and a green reconstruction,
underpinned by investment in people and digital
transformation, is integral to all. Strengthening COVID Accelerating Magnetising Fortifying the
They are: the Foundational Commitment to adaptation for investment in a pursuit of social
Economy protecting and recovery and green recovery value
• Strengthening the Foundational Economy enabling skills future prosperity
and employment
• COVID Commitment to protecting and enabling
skills and employment
• Accelerating adaptation for recovery and
future prosperity All the Beacons have an integrating purpose across Government
• Magnetising investment in a green recovery
and involve working closely with social partners and others to build
on the strong relationships which have evolved over recent months.
• Fortifying the pursuit of social value
9 Our Economic Resilience & Reconstruction Mission
1 Strengthening
the Foundational
Economy
The COVID crisis has removed any doubt about
the fundamental role of the Foundational Economy
to the well-being of the nation. This is the part of
the economy which could not be shut down as it
provides the infrastructure of everyday life, serving
our essential daily household needs, and keeping us
all safe and civilised.
We have championed the role of the Foundational
Economy seeking a more effective balance between
the focus on the tradeable and competitive economy
and the mainly sheltered Foundational Economy
producing daily essential goods and services which
underpin liveability and sustainability. But there
remain a number of barriers, both in structure and
attitudes, before we can realise the full potential of
this approach. We will strengthen the Foundational
Wyn Griffiths and Rhys Gwilym making PPE visors at M-SParc, Gaerwen, Anglesey. Credit Kristina Banholzer.
Economy, to help build the resilience of communities
to the economic fallout of the pandemic and leaving
the European Union.
10 Our Economic Resilience & Reconstruction Mission
Scaling up good practice in the Welsh public sector and clarity that it is a cross- economy, such as hospitals, universities and local
Foundational Economy cutting priority. councils. We are working with NHS Wales to embed
Too often overlooked in economic development, Foundational Economy principles and action across
Through the Foundational Economy Challenge
this is the part of the economy which provides all areas of delivery. Initially, this will focus on their
Fund we have supported partners to experiment
the essentials of everyday life such as electricity, procurement of food, a priority economic sector,
and deliver innovative solutions to deep rooted
water, health services and social care. The and to strengthen fragile long-supply chains in vital
issues within the Foundational Economy. We will use
Centre for Research on Socio-Cultural Change commodities such as critical Personal Protective
established networks, such as the Public Service
estimated that that the Foundational Economy Equipment. Food is a priority sector of the economy
Boards, to spread and scale positive outcomes
accounts for approximately four jobs in every and increasing the proportion of local produce
from the Challenge Fund so that the benefits of
ten and approximately £1 in every £3 spent by in our public sector supply chains could identify
deploying these new approaches are replicated
households in Wales. It provides the jobs at the opportunities for growing medium sized enterprises in
at pace and at scale, for the good of communities
heart of local communities in areas such as care and this sector.
across Wales.
health services, childcare, food, housing, energy, Analysis of procurement expenditure data and
We will support Public Service Boards to implement
construction, waste and recycling. People depend future spending priorities will feed into our business
relational procurement programmes which meet
on these services and products - they are critical to development support to develop the capability of
the priorities of local well-being plans. The plans
creating a Wales of cohesive communities which are indigenous businesses to compete for upcoming
will focus on new approaches which can localise a
attractive, safe, viable and well-connected. contracts and to fill supply voids so that expenditure
greater proportion of public procurement creating
Social care plays an essential role in the economy, which currently flows outside of Wales is redirected
stronger and more resilient Welsh supply chains
helping those with caring responsibilities enter, into our economy and communities.
which will in many cases offer lower carbon goods
return to or stay in work. The sector is also a and services. Specific attention will be paid to Alongside this dedicated activity the Foundational
significant and growing provider of employment supporting social enterprises, employee owned Economy is deeply embedded in the approach to
opportunities in its own right. According to recent organisations and SMEs rooted in their communities economic reconstruction. Investing in social care,
research*, social care is the seventh largest to engage in public procurement, helping sustain childcare, housing, energy and low carbon, and digital
employment sector in Wales, contributing £2.2bn and create local employment opportunities leading connectivity not only address the foundational needs
to the Welsh economy. to healthier communities. of civilised life in Wales, but can offer meaningful and
Work is being progressed to embed the rewarding careers and be harnessed for economic
An anchor institution is one which, alongside its
Foundational Economy across all parts of Welsh development.
main function, plays a significant role in a locality
Government, demonstrating leadership to the wider by making a strategic contribution to the local
* https://socialcare.wales/cms_assets/file-uploads/The-Economic-Value-of-the-Adult-Social-Care-
Sector_Wales.pdf11 Our Economic Resilience & Reconstruction Mission
Town Centres This creativity and repurposing is vital to reverse
the hollowing out of town centres, to restore their
The sad state of many town centres demands
vibrancy, and to reconnect them with their hinterland
urgent action. As part of our Transforming Towns
supported by active and sustainable travel. We must
agenda the Town Centre First Principle captures
lock-in the positive impacts of the pandemic such as
the role of the public sector as a catalyst to breathe
reduced traffic, congestion and emissions and the
new life and purpose into local streets. It is though
town centres of tomorrow must be green and clean
not limited to the public sector. We know that we
– places which are attractive to work, visit and live.
can no longer rely on retail alone, so we must
ensure we use the creative opportunities to bring Our long-term ambition is for 30% of Welsh workers
new economic opportunity and employment back to be working flexibility and remotely, to help drive
to the centre of our towns as part of a wider offer regeneration and economic activity in communities.
of activities and uses including leisure, learning, We will develop regional co-working hubs in
local services and cultural activities. There is the town centres, and as a government lead the way
opportunity to re-purpose buildings to create deconcentrating and relocating our own workforce
co-working spaces and encouraging new green back into town centre locations. This will also bring
skills and opportunities such as repair cafes, reuse positive changes to Wales’ working culture by
and refill retail and remanufacturing innovation to helping workers’ productivity as well as their work-
breathe life back into struggling shopping centres. life balance.
Creating greener spaces with improved urban
air quality within ‘walkable neighbourhoods’ will
Digital inclusion
help the Foundational Economy thrive and ensure
community needs are met locally. We are creating a digital strategy for Wales because
we want people in Wales to experience modern,
Our strategic plan ‘Welcome to Wales: Priorities
efficient and streamlined public services and at the
for the visitor economy 2020-2025’ sets out a
same time stimulate innovation in our economy and
purposeful place-making approach to town centre
support outcomes today and for future generations.
and local community regeneration - creating local
destinations that reflect the distinctive character, We know there is a large proportion of people
attractions and facilities that future visitors will be across Wales who are not digitally confident – they
looking for. either do not personally use the internet, lack12 Our Economic Resilience & Reconstruction Mission
the basic digital skills to access vital services and As part of our work supporting the Foundational
information and may lack access to a device and Economy all categories of spending by the public Response to COVID: PPE supply
or connectivity. As a Government we will work to sector in Wales are being analysed for the potential
ensure that no citizen is left behind as we embrace to redirect to support local and regional economies. The experience of sourcing PPE during the
a digital first approach and digital inclusion will be We will strengthen the procurement profession and pandemic has taught us important lessons as
at the heart of all we deliver. Our citizens need to to support a transformation of the Welsh supply we set about work on the reconstruction.
be digitally confident so that they can engage and chain to be able to allow SMEs to take advantage of Working together NHS Shared Services and
benefit from our investment in digital innovation this opportunity. Local Government did an excellent job of
securing supplies and distributing them to where
We will also deliver a major digital infrastructure they were needed. We now have significant
programme and investment to support multi- Arfor
stocks of all types of PPE. Welsh Businesses
place working hubs. We will enable this shift by The Arfor programme (2019 -2021) provides the also rose to the challenge of repurposing to
accelerating work on broadband access through a basis for a range of innovative projects in the supply PPE for frontline workers.
boost to our Superfast Broadband Programme and counties of Ceredigion, Gwynedd, Carmarthenshire
developing novel approaches to supporting mobile and Anglesey. It places an emphasis on developing The crisis also showed the fragility of the global
connectivity and general access to IT provision. the economic infrastructure with the aim also supply chain and the economic opportunity of
of benefiting the Welsh language by providing ‘on‑shoring’ everyday products we currently
economic opportunities in communities with high import. In securing sources of PPE that give
Public procurement percentages of Welsh speakers or in towns that the Welsh NHS greater resilience we can also
Some 48% of NHS Wales’ annual £22m food-related serve those communities. The programme has support more local companies to grow. The PPE
budget expenditure is being spent outside of Wales. supported businesses and stimulated individuals Winter Plan for health and social care includes a
Large parts of the public sector supply chain where to venture for the first time. It has also developed commitment to place a portion of orders for Type
expenditure is apparently locally retained are also projects supporting youth entrepreneurship such as IIR Masks with Welsh-based manufacturers, and
in fact sourced from outside of Wales. We have the Llwyddo'n Lleol project that provides opportunities there are good opportunities to inshore further
opportunity to work with our suppliers to develop for young people to develop business ideas and amounts of PPE products going forward.
shorter, Wales based supply chains and retain value supports them along the way. The Enterprising
in our national economy. This supply chain work is Communities Challenge project delivered through
a key element of the Manufacturing Action Plan as Arfor also works with three communities, offering
it will present opportunities to produce more raw new opportunities for developing ideas that will
materials, components and finished goods in Wales circulate money within their communities and
and supply trhem into the public sector. create jobs.13 Our Economic Resilience & Reconstruction Mission
2 COVID We remain firmly committed to supporting people
to access training, higher and further education
Commitment to in order to gain and retain fair employment or
self-employment, securing learner continuity and
protecting and progression in the labour market at this critical time.
With a focus on tackling economic inequality and
enabling skills supporting those who have been most adversely
affected by the COVID crisis - especially young
and employment people, those in low paid and insecure employment,
ethnic minority communities and disabled people.
Employability and skills support is vital in times
of economic uncertainty, and it’s clear that the COVID Commitment
COVID-19 pandemic threatens to reverse progress
made in reducing unemployment and economic We will continue to provide crucial assistance to
inactivity in Wales over the last decade. Working people who might have lost their job or training
across Government, we remain focussed on opportunity because of the pandemic, to help
supporting people across Wales into work today, people develop new skills fit for the future and to
whilst also preparing the workforce for the immediate find new employment.
and long-term challenges of the future as set out in
the recently published Coronavirus Reconstruction: Young people will be supported to continue in
Challenges and Priorities. learning, gain crucial skills for employment, enter
work based learning, or join the workforce for the
Our goal is to create resilient individuals who have
first time.
the skills, enthusiasm, drive and creativity to fulfil
their potential in a fast changing world, where ability, Employers will have our support to recruit new
background, gender, or ethnicity is not a barrier to talent, retain and upskill their existing workforce and
securing fair employment. improve workplace health and well-being.
Apprentice Nikita Williams at Capgemini14 Our Economic Resilience & Reconstruction Mission
Our “COVID Commitment” pledge is to ensure
that anyone over 16 in Wales can access advice
and support to find work, pursue self-employment
or find a place in education or training, targeted
at individuals in the Welsh labour market who are
most likely to be negatively impacted. A suite of
measures underpin the commitment.
In addition, universities and colleges are being
supported to maintain teaching, learning and skills,
including targeted support to enable institutions
to provide blended and online learning during the
pandemic.
Support for individuals include:
• Expanded front line services for people 16+
within Working Wales and Communities for Work
Plus to provide advice and guidance, assist with
matching participants with local labour market
opportunities, support job search, employability
skills and training.
• Expanded mentor provision through Community
Employability Programmes for unemployed
individuals requiring more intensive and tailored
support, with onward referral, where appropriate, L to R: Nicky Blake, Managing Director of High Precision Wales with apprentice, Manmeet Singh completing NVQ level 3
to the wider employability offer including DWP in Engineering Manufacturing.
services.15 Our Economic Resilience & Reconstruction Mission
• Boost to retraining support for the existing Support for Employers include: psychotherapy and occupational support
workforce to find new or better employment, to people with mental and physical health
• New recruitment support and incentives to
switch sectors and occupations, and access conditions, and plays a vital role to help those on
support employment of young Apprentices
a wider range of job opportunities in areas of sickness absence to return to work more quickly,
aged 16-24, to encourage re-employment
skills demand through the national roll out of supporting employee retention and reduce
of redundant apprentices, and sector driven
the Personal Learning Account Programme, absenteeism for those at risk of unemployment.
Shared Employer Apprenticeships.
ReAct, the Online Skills Toolkit and Wales Union Plus training to businesses to help them improve
Learning Fund. • Training support for employers to upskill their workplace wellbeing practices, guidance
and develop their people through the Wales and policies, with new resources to help support
• New employer incentives of up to £3,000 to
Union Learning Fund, plus specific partnership the challenges being faced by business and
encourage employers to create Apprenticeship
projects with the creative, hospitality and furloughed staff.
opportunities, for people of all ages to learn
tourism, semi-conductor, advanced engineering,
and undertake qualifications whilst earning a • Support to employers and employees through
manufacturing, and digital industries through
wage. the Healthy Working Wales service, which is
the Flexible Skills Programme and Degree
delivering a one-stop location for COVID-19
• Essential employability support and work Apprenticeships.
related guidance and resources to support safe
experience for 16-18 year olds through the
• Dedicated support to aid the recruitment and working environments, bespoke toolkit for
Traineeship Programme. Plus support for more
retention of Disabled People. Six Disabled employers with regards to mental health and the
graduates to access work experience, work
People’s Employment Champions will engage impacts of COVID-19, with the Time to Change
tasters and paid work placements when they
business leaders across Wales to inspire, lead Wales campaign helping people face difficult
leave University through Go Wales.
and instigate the change that is required to conversations about mental health and stigma in
• Health led counselling and therapeutic close the employment gap. An employer toolkit the workplace.
services for those at risk of unemployment due will guide employers through the recruitment
to musculoskeletal or mental health problems journey from business case to retention,
with expanded peer mentoring support for dispelling myths along the way, plus roll out
those unemployed with mental health and/or of an e-learning module on the social model
substance misuse issues as a result of COVID-19. of disability.
• A new self-employment barriers fund, offering • Support for Workplace Well-being through
up to £2,000 to support business start-up is expansion of the In Work Support Service.
available through Business Wales. It provides rapid access to physiotherapy,16 Our Economic Resilience & Reconstruction Mission
Looking ahead: Coronavirus on the labour market, and focus on how Institutions already have funding in place to help
we can best support the most disadvantaged and parents meet the costs of childcare to enable them
We will press ahead with our reforms to the
marginalised groups. to study. Our Childcare Offer for Wales provides
post-compulsory education and training (PCET)
30 hours of early education and childcare provision
sector, and maintain our intention to introduce a Employment and income is a priority theme of
to the working parents of 3 and 4 year olds and we
Tertiary Education and Research Bill early in the the forthcoming Race Equality Action Plan and
are currently considering whether or not this should
new Senedd term. We will work with the sector we will work with Black, Asian and minority ethnic
be extended to parents in education and training.
to realise our recently published vision for tertiary communities to develop meaningful actions within
education, meeting the challenges of the immediate that plan that address employment issues related to
and longer-term future that have been transformed both the disproportionate impact of the pandemic
by the pandemic. We will ensure a more strategic, alongside the inherent disadvantage caused by
coherent, and efficient approach to overseeing structural and systemic racism.
tertiary education and research, under the auspices
Our support will be underpinned by a new
of a single Commission, with a clear remit to shape
Careers Wales strategy that will ensure provision
a system that works for the people of Wales and the
of a bilingual, inclusive and impartial career
Welsh economy.
guidance and coaching service for the people of
Procurement goes live for a new Job Growth Wales Wales. Supporting young people and adults to
early in 2021. The new programme will deliver a make positive transitions into learning and work,
holistic approach to help young people prepare understanding the skills required to succeed in the
for and experience the world of work, and support labour market and contribute to the future economy
employers to take on young people. of Wales. In addition to developing their work with
employers, training providers and entrepreneurs
We are revisiting our other employability schemes
to understand their skills requirements and
and work is well underway to develop a new
opportunities for young people and adults.
programme to provide support for people over
the age of 18 to overcome barriers to work, and Alongside this we continue to address barriers
enter quality sustainable employment. As such, to entering employment such as affordable high
we are doing more to understand the impacts of quality childcare. Our Further and Higher Education17 Our Economic Resilience & Reconstruction Mission Enabling a green and just recovery Opportunities in health and social care are expected to continue to grow in demand in the future, as such Social Care Wales, our social care workforce regulator, will continue to support people with the right values into the sector. The ‘We Care Wales’ campaign showcases roles and careers in social care. A new jobs portal is supporting recruitment and retention in the sector, to give people a flavour of what it is like to work in a care role. The jobs portal also gives people the opportunity to undertake basic training to attach to their applications for employers to view prior to interview through a new feature ‘Question of Care’. Skills and employability have a key role to play in underpinning Wales’ decarbonisation ambitions. The challenge to Government and employers alike is to upskill the existing workforce, and rapidly expand the workforce in green growth sectors. Investment in low carbon housing at scale and upgrading housing stock particularly social housing, is likely to Encouraging youth volunteering in areas such as footprints will require joint working with industry be a central plank of recovery to increase energy nature restoration could provide opportunities in order to respond to their future requirements efficiency of Welsh homes, reduce fuel poverty and to build skills, social and human capital, and give to support digital skills development and job create jobs. Responding to the Ministerial Green young people a sense of purpose and ability to transition, particularly from other parts of the Recovery Taskforce Report, we recognise that make a difference on the issues they care about – economy as further industrial transformation optimising existing programmes, adapting training not least the environment and social justice. takes place. provision and increased delivery in low carbon will Responding to the pace and scale of digital be critical. transformation and disruption of traditional industrial
18 Our Economic Resilience & Reconstruction Mission
3 Accelerating
adaptation for
recovery and
future
prosperity
We will help businesses respond to the dual
challenges of EU exit and COVID-19, as well as to
the long term challenges of the climate emergency
and a more digitally connected world. Economic
resilience demands a diverse range of firms. We will
grow the base and size of indigenous local firms
providing access to advice and support, through
Business Wales and the Development Bank of
Wales, to create jobs and enable them to adapt to
the fourth industrial revolution. This will include
how we support firms to engage with key clusters
in driving forward current and future areas of digital
innovation, opening up new opportunities for
growing quality jobs less at risk of automation.
Because of the extreme challenges the visitor
economy has faced from the outset of the pandemic,
we will work with the tourism and hospitality sector
to develop a Recovery Plan which support them
in the short term with a view to building resilience,
sustainability and profitability for the long-term. Private sector housing scheme in Cardiff funded under the Welsh Government Innovative Housing Programme.19 Our Economic Resilience & Reconstruction Mission
Economic Resilience Fund Circular economy community infrastructure such as repair and
reuse facilities and the capacity to reprocess and
We will build on the success of the Economic Wales is a global leader in recycling and recognised
recycle more materials. This will work to retain
Resilience Fund (ERF) where the focus shifted as a country that puts sustainability at its core.
the value of these materials here in Wales and
between immediate financial support for We recognise the economic opportunities which exist
create more resilient employment opportunities by
recovery and support for development as in adding value to and utilising recycled resources
better connecting the collection and processing of
circumstances demanded. We are supporting and the potential of improving supply chain resilience
resources to the businesses and enterprises that
businesses to meet the dual challenges of offered by adopting circular economy thinking in our
need them.
COVID-19 and EU exit whilst also helping make approach to economic development.
them fit for the future.
It is imperative that responding to the climate and
We will place a particular focus on creating the nature emergency is integrated across all economic Upgrading housing
right conditions to sustain, transition and grow activity, with an explicit commitment to moving to a The new Optimised Retrofit Programme, fitting
the manufacturing base in Wales in a way which more circular and resource efficient economy, and energy efficiency measures in up to 1,000 homes,
shifts from our fossil-fuelled past by pursuing the a transition to a low carbon economy framing our will tackle domestic carbon use and fuel poverty,
Manufacturing Action Plan. engagement and investments. The circular economy energy efficiency behaviour change, drive new
connects directly to our global responsibility as skills, training and innovation, and local supply chain
The third phase of ERF will be a key enabler for
users of vast quantities of resources from overseas capacity building. This investment will make towns
this, making funding available to businesses to
which contribute to deforestation and many forms of and cities healthier as well as strengthening the
deal with the economic challenges of COVID-19,
pollution and assorted environmental issues. foundations of the economy. It will also help us learn
and acknowledging the additional challenge
posed by EU exit. We also acknowledge the Engagement for formulating the next Low Carbon lessons, as we seek to address the much broader
emotional and mental impact that COVID-19 Delivery Plan will be a vehicle to both accelerate challenge of decarbonising millions of residential
has had, and the Fund will support adaption in progress on industrial de-carbonisation and the and commercial buildings across Wales.
business development including the provision of circular economy strategy. We will invest in social housebuilding to deliver
mental health training and skills support. much needed affordable, quality housing and
We have already invested a billion pounds into waste
Rapid and agile funding through the and recycling infrastructure and we will continue provide opportunities for our SME home builders.
Development Bank of Wales and advice from and expand funding for regional infrastructure We will also boost our support for Small Home
Business Wales will continue to support front-line across Wales to ensure that materials are supplied Builders to see more of our homes built by a diverse
Welsh businesses. to meet business and citizen need. This will include range of Welsh based home builders to promote20 Our Economic Resilience & Reconstruction Mission
competition, innovation and choice for consumers. A social enterprise is a business with primarily Employee ownership is an equally important
Alongside this we will Invest and incentivise social objectives whose surpluses are principally model in helping to build our well-being economy.
Modern Methods of Construction (MMC) & Off‑Site reinvested in the business or in the community, Employee ownership is a proven and effective
Manufacturing (OSM) capability and supply chains rather than being driven by the need to maximise mechanism for reducing wealth inequality, driving
to deliver high quality, energy efficient and low profit for shareholders and owners. Social, employee engagement and tackling regional
carbon homes, in particular the procurement environmental, economic or cultural purpose is at resilience. Employee owned businesses benefit
strategy for social housing moving towards a higher the heart of what they do. They help build local from the alignment of interests created through
proportion of factory built homes as set out in our economies, ensuring that wealth and resources are everyone having a stake and a say. The “ownership
Modern Methods of Construction Strategy for Social created and re-invested in local communities. dividend” yields tangibly stronger performance,
Housing. better commercial resilience and more inclusion
Social enterprises in Wales are an active part of the
as benefits are shared and re-invested in local
We have established the Welsh Construction Forum, international movement, rebuilding a fairer, more
communities. As a result of their broad ownership
whose 12-point short-term action plan “Building inclusive and sustainable economy. In 2019, the
structure, employee owned businesses are
Back a Better Wales” focussed on workflow and cash Welsh social enterprise sector has already grown
grounded in their community.
flow for construction businesses, supporting SMEs, to more than 2,000 social enterprises employing
growing the Foundational Economy and developing 55,000 people and contributing over £3bn to the
a low carbon future. It will give businesses in the economy*. An important and dynamic component
sector confidence to continue to employ and train of the economy, they provide essential services,
people, streamlining the process of bidding for jobs, training and volunteering opportunities in
public sector work and ensuring that the sector local communities throughout Wales.
develops safe systems to deal with workplace social
We intend to help rebuild, grow and strengthen
distancing.
the social enterprise sector so that it is a natural
business model of choice for entrepreneurs
Social enterprises and employee owned delivering solutions to social, economic and
businesses in the well-being economy environmental challenges.
We will apply more concerted and formal methods
to encourage both social enterprise and employee
*https://wales.coop/wp-content/uploads/2019/06/Map-
owned business models for our well-being ping-the-Social-Business-Sector-in-Wales_Executive-Summa-
economy. ry-BI-LINGUAL-DIGITAL-VERSION-JUNE-2019.pdf21 Our Economic Resilience & Reconstruction Mission
Access to finance Research and Innovation after EU Exit highlighted the UK. Ensuring that Wales has the future research
the impressive impact and international reach and innovative capacity to win greater competitive
The Development Bank of Wales will play a
that the Welsh research base has made since funding to build a strong and sustainable science
vital role in supporting and encouraging this
devolution; including the significant contribution it base will require devolution of a significant funding
adaptation, actively managing funds to addresses
has made to growing Wales’ innovation performance stream designed to grow their capacity across
the finance needs of businesses as they seek to
in Europe. the whole R&D spectrum, targeting people, skills
grow and respond to COVID-19 and post Brexit
and essential infrastructure. This could provide
opportunities and challenges. As a cornerstone In July 2020 the UK Government’s Research &
investment to build new capabilities important to
economic development institution we will work with Development (R&D) Roadmap set out an important
our future in the areas of cybersecurity, Artificial
the Development Bank of Wales to maximise the and ambitious vision for a more research intensive,
Intelligence (AI) and data science, and will require
contribution that it can make to the fulfilment of our innovation-led economy with research and
UK funding in order to bring our proposals forward.
economic policy objectives. innovation as a driver for both COVID recovery and
This activity will require the private sector to step supporting the UK’s withdrawal from the EU and Since 2014, the Welsh Government has invested
up its funding, and the role for high street banks ambitious commitment to carbon neutrality. over £500m of EU structural funds in research
is critical in this. We will continue to engage with and innovation. This investment has made a major
Harnessing Welsh excellence in research and
banks to encourage them to embrace forbearance contribution to increasing the volume, quality and
innovation will include developing new technologies
and patience in their dealings with businesses in impact of research in Wales over the last 20 years.
which will be important for accelerating economic
temporary distress, and to work with them to help It is now imperative that the UK Government delivers
recovery post COVID including opportunities to
shift their business models to align with our vision. on its promise that Wales will not be a penny worse
learn and work remotely, reduce the isolation of
off as a result of leaving the European Union
some Welsh communities, remove the need to live
Positive innovation performance or travel to economic hubs, and create opportunities The UK Government’s commitment to a significant
for areas of rural Wales to thrive, whilst more people increase in R&D investment over the next three
Wales has a proud history of cutting-edge research
live, work and learn from all corners of Wales. years is a positive step, and we will argue for a fair
and innovation and is a globally-engaged nation
and substantial devolution of this funding to Wales.
for its size. Resarch, development and innovation Increasing Wales’s R&D/ innovation base remains
are critical to building a resilient economy and dependent on the UK Government delivering We will continue our financial support through
bringing forward those opportunities which deliver on the Shared Prosperity Fund and ‘levelling-up’ SMART Cymru to develop, implement and
on our agenda for a prosperous, green and equal agenda. There must be greater and more equitable commercialise new products, processes and
economy. Our 2019 policy paper Protecting geographical distribution of R&D investment across services. This comprehensive approach provides22 Our Economic Resilience & Reconstruction Mission
support from feasibility, through industrial research, As a key part of our overall efforts to support
experimental development and exploitation, varying economic recovery in Wales we will assist
the intervention rates according to the level of businesses to recover and rebuild their exports to
risk. This will be supplemented by our SMART adapt to and any associated new processes and
Innovation advisory service for businesses looking trade agreements.
to undertake RD&I, delivered pan-Wales by a
Support will be available to help companies of all
team of highly experienced innovation specialists,
sizes across Wales on the key steps on their export
research development managers, manufacturing
journey – from inspiring businesses to export;
and design specialists, commercialisation managers
building capability; finding customers, and accessing
and intellectual property (IP) specialists.
overseas markets – with the overarching ambition of
For only modest investment the Small Business creating a strong, vibrant and sustainable exporting
Research Initiative (SBRI) Catalyst and SBRI sector to help safeguard existing and create new
Accelerator Programmes have provided a jobs and opportunities for people in Wales.
mechanism for public sector organisations to
procure innovation from businesses via a challenge,
rather than a specification. We will continue to
stimulate and nurture these relationships through
the SBR.
Exports
Exports are important for a resilient economy,
helping to offset domestic market downturn and
resulting in more productive businesses. In recent
years, export performance in Wales has been
Georgia Gascoyne, CEO and Managing Director
positive with the value of goods exported for the of Huntingdon Fusion Techniques, Bury Port,
year ending 2019 reaching £17.7bn, an increase of Carmarthenshire. HFT has achieved significant
international trade growth over the last five years,
34% since 2015. with exports now making up 80% of the firm’s sales.23 Our Economic Resilience & Reconstruction Mission Manufacturing Wales has a long proud history of manufacturing and it remains a significant contributor to the well-being of the citizens of Wales in terms of employment and wealth creation. We have many innovative companies in Wales and we are facilitating a partnership between industry, government, academia and trades unions to take action to future proof the sector. Our Manufacturing Action Plan brings together a programme of work aimed specifically at this sector. We have to transition and support the transformation of our manufacturing community - including its supply chains - to one which is increasingly involved in ‘added value’ activities. We need a manufacturing community which consists of companies who have a strong financial performance, who undertake strategically important activities and who make a positive social, economic, environmental and cultural impact on their local communities, their regions and the supply chain in Wales. The Welsh Government, with its proud history of working closely with industry, academia and trade unions, will support manufacturing businesses and workers through this period of change, helping them embrace the future.
24 Our Economic Resilience & Reconstruction Mission
4 Magnetising
investment in a
green recovery
We will maximise the impact of future major
investment as ‘magnet projects’ to attract
investment for long term, sustainable gains,
building on progress to date. These projects
will embrace and exploit new and disruptive
technologies such as Artificial Intelligence and
language technologies, drawing employment,
skills, innovation and development to Wales.
This will include a strong emphasis on research
and development, innovation, regional stimulus
plans, clustering SMEs, skills, recognising that a
‘green recovery’ is not something to put in a single
box, but rather something which must inform and
drive action across the economy. AMRC Cymru in Broughton, Flintshire. AMRC Cymru is a Welsh Government Magnet Project, established as a cutting edge R&D facility
to provide an open innovation platform accessible to all manufacturers across Wales. The facility has received £2m investment from
Welsh Government to establish the Sustainable Packaging Hub to develop technologies increase the current recycling rates of plastic
bottles and mixed plastics. AMRC Cymru is also home to Airbus’ Wing of Tomorrow project to develop novel new automated assembly
solutions and integrated digital technologies.25 Our Economic Resilience & Reconstruction Mission
Attractors & Magnets the Global Centre of Rail Excellence. We will also emphasis on existing and emerging magnet
deliver a marine energy challenge and seek to initiatives and projects across Wales that provide
We already have a number of notable magnet or
become the global leader in research, development business opportunities and attract investment for
attractor projects, instigated and delivered by the
and deployment of Offshore Floating Wind. Wales’ long-term gains and in areas of activity that
Welsh Government, working in partnership across
drive an equal, green and prosperous recovery.
sectors and regions. As well as being standalone A suitable site is currently being sought to host the
projects and sources of economic activity and R&D UK Government’s 20 year STEP fusion technology We will continue to promote Wales as a location for
in their own right, they also serve as a catalyst for programme, and we will continue to work with local a UK gigafactory – a key component if the UK is to
further activity and investment in the industries of authorities across Wales to encourage submissions take a leading position in the manufacture of electric
tomorrow, from public and private sectors, attracting that are able to meet the specified criteria. vehicles.
businesses to undertake some or all of their activity
We will continue to create the conditions in which
in Wales.
we can attract projects which will in turn attract
There are also important policy developments businesses, leveraging funding set out by the UK
underway. Wales, like the other countries of the UK, Government through mechanisms such as the
will be introducing a new Deposit Return Scheme in Industrial Strategy and R&D Roadmap. We will
the coming years and we will trial ground breaking maximise the relationships with our social partners
digital technology here to examine whether better and trade bodies, utilising their channels to further
more resource efficient processes are possible amplify the voice of the Welsh economy at a
using existing collection streams. UK level.
Centres of Research & Excellence Inward Investment
In North Wales, we will build on the success of the Our approach to Foreign Direct Investment will
Advanced Manufacturing Research Centre (AMRC continue to promote those areas of the economy
Cymru) by creating an Advanced Technology where Wales demonstrates international class
Research Centre in collaboration with the Ministry of capability including cyber security, compound
Defence (MOD) to develop a vibrant technology and semiconductors, fintech, life sciences, renewable
innovation cluster aligned to emerging technologies. energy and in value added / next generation
In the south we will continue our efforts to establish manufacturing. We will also place significantYou can also read
